Sabah-based gold mining company, Bahvest Resources Berhad has announced its second quarter financial results with that haul of its highest gold production quarter ever with 180.26 kgs of net gold since it commenced commercial mining operations in August 2018.
Included in its production haul were 14.35 kgs of silver from its mining area of 317.7 hectares in Tawau, Sabah which is under leasehold until 2048.
The gold production of 180.26 kgs was 104.63% higher than the 88.09 kgs mined last year, this was reflected in its quarterly revenue which jumped 63.30% year-on-year to RM43.65 million from RM26.73 million. Profit attributable to owners of the company too, surged 6.20 folds to RM9.0 million from RM1.45 million a year ago, translating into a healthy net profit margin of 20.63%. Both the revenue and net profit achieved in 2QFY22 was the highest ever.
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Overall turnover and net profit went up 37.27% and 181.09%, gold production in the preceding quarter was 129.67 kgs. For the cumulative 6-month performance, Bahvest’s revenue and net profit increased by a significant 57.35% and 266.45% to RM75.45 million and RM12.21 million, largely boosted by the strong gold production in 2QFY22. CEO, Datuk Lo Fui Ming added “We are extremely delighted that our hard work has finally come to fruition following a challenging journey over the past three years since our gold mining activities started in August 2018. Having gone through a steep learning curve where we explored, learned, and improvised our production processes, we can now reap the rewards”
Moving forward the CEO stated that the group is already working on o further increasing its gold output. Bahvest had over the last three years, invested in expanding its mining and production capacity. Currently, the plants process 1,400 metric tons of ore per day by comparison to the initial capacity of only processing 800 metric tons of ore per day.
More upgrading and expansion of our production process and capacity are on-going.” “On the mining front, we have also expanded from one to five adjourning open mining pits. The five pits, which cover a total area of 38 hectares, only represent 12% of the entire area of 317.7 hectares. We are now mining sulfide ores (rocks) from the surface of the three older pits and oxide ores (soils) from the shallow surface of the two newest pits.” he concluded.
Gold prices in the international commodity market are holding firm above USD1,800 per ounce, and may likely trend higher given the expectation of inflation in the global markets.
